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Canadian Auto Sales Show Signs of Recovery

Canadian new-vehicle sales posted a second consecutive month of year-over-year growth in July, suggesting the market may be beginning to stabilize. An estimated 173,000 vehicles were sold, up 0.5% from July 2025 and representing the strongest July since 2019. The SAAR improved to 1.9 million units, its highest level since February. Industry forecasts have also improved, with 2026 sales now projected at approximately 1.89 million units.

Results varied considerably by manufacturer. Subaru led reporting brands with sales up 28.7%, followed by Volvo at 11.3%, Lexus at 9.6%, and Toyota at 8.7%. Toyota's RAV4 family remained particularly strong, with sales increasing 13.8%. For fleets, two months of improving sales is encouraging, but uneven OEM performance and continued shifts in ZEV demand suggest that vehicle availability, production schedules, and order timing will remain important considerations through the remainder of 2026.

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